Scholarships as a cost to university athletic departments are somewhat controver

Question

Scholarships as a cost to university athletic departments are somewhat controversial because _______

A. they must adhere to title IX legislation

B. wages paid to athlete’s tutoror are not considered in the total cost

C. scholarship should be considered wage thereby voiding amateur eligibility.

D. The actual marginal cost of admitting an additional student is close to zero.

A standard cost benefit analysis may undervalue an athletic department because it does not consider_______________:

A. Coaches’ salaries are too high

B. Only football and/or men’s basketball ever bring in any revenue

C. Spillover benefits, such as town pride or attracting brighter students.

D. Scholarships are not considered university wages.

Football teams in the College Bowl Subdivision negotiate their broadcast contracts through ________________ where the revenue is then evenly split.

A. their conference

B. the NCAA

C. the university

D. the entire BCS acting as a monopoly

Explanation / Answer

Answer:- A standard cost-benefit analysis may undervalue an athletic department because it does not consider_______________:

Correct Answer:- C. Spillover benefits, such as town pride or attracting brighter students.

Reason:- Economic cost and benefit analysis does not account the various other related benefits such as pride, passion and loyalty associated with the sports.

Answer:- Football teams in the College Bowl Subdivision negotiate their broadcast contracts through

________________ where the revenue is then evenly split.

Correct Answer:- A. their conference

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